Can Videogames be used to create jobs?

BBC video article from this morning about UKs games industry potential - with particular interest in Dundees role.

http://www.bbc.co.uk/news/technology-11378852

Personally i believe that the UK, and Dundee, has the potential to be have a far more proficient stance in the world gaming industry but it seems to be a loosing battle as the Government is still unwilling to allow tax breaks for this industry.

http://news.stv.tv/scotland/197267-withdrawal-of-computer-games-industry-tax-breaks-under-fire/

I am still unsure why this is. Are videogames yet to prove their worth as a hugely profitable and significant industry for the UK?